Philippines cheers Moody's credit rating upgrade

[October 29, 2012]  MANILA, Philippines (AP) -- Philippine officials have welcomed a ratings upgrade by Moody's Investor Service to one notch closer to investment grade status.

Moody's on Monday upgraded the Philippines' foreign and local currency bond ratings from Ba2 to Ba1, saying the ratings outlook is stable. It cited improved economic performance, enhanced medium-term growth prospects and a stable financial system.

Central bank Gov. Amando Tetangco said he was delighted by Moody's upgrade. Finance Secretary Cesar Purisima says it has been a decade since all three major ratings agencies rated the Philippines one notch below investment grade.

Purisima says the upgrade affirms President Benigno Aquino III's belief that good governance is good economics.

The economy posted 6.1 percent growth in the first semester, up from 4.2 percent a year earlier.

[Associated Press]

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